The Municipality of Córdoba announced a broad tax relief scheme aimed at promoting investments and strengthening local production. The project will be discussed in the City Council and includes a 50% reduction in the rate paid by industries based in the city. The measure seeks to improve the competitiveness of the private sector and encourage job creation.
Currently, the industrial tax burden is 0.6 per thousand for commerce and 0.9 per thousand if other sectors such as promotion, advertising, and disability are included. With the new ordinance, that rate will be reduced by half for all affected productive sectors. The initiative will be in effect for a decade and will also include tax stability throughout the entire period.
The Productive Activities Promotion Program (PPAP) will be aimed at micro, small, medium, and large companies, both existing and new. The plan covers sectors such as urban development, tourism, industry, and medical centers. Each of them will have specific reductions in taxes such as Commerce and Industry, Real Estate, and Automotive.
Staggered tax reductions and additional benefits for energy investment
Industries already established will have access to reductions of 40%, 25%, and 15% in three consecutive stages. In the case of new investments, the discounts will reach 70%, 50%, and 30% during the same period. Companies that incorporate renewable energies will obtain an additional benefit of 10%, which will later be reduced to 5%.
In the field of urban development, a reduction of up to 30% is planned for building permits, with the possibility of financing them in 12 interest-free installments. In tourism, 5-star hotels will have reductions of 50%, 35%, 25%, and 15%, and 3- and 4-star hotels discounts of 40%, 30%, 20%, and 10%. Additionally, City Tours will have 25% less in Commerce and Industry and Automotive for five years.
Medical centers will receive reductions of 40%, 25%, and 15% if they already exist, and exemptions for new centers of 100%, 70%, 50%, and 30% for ten years. To enter the program, minimum investments will be 55.3 million pesos (121,914 pounds) for microenterprises, 331.9 million (732,020 pounds) for small, 1,053 million (2,320,755 pounds) for medium, and 5,266 million (11,610,417 pounds) for large companies. This is determined according to the current Municipal Economic Unit.
